Why Is My Credit Score Dropping?
As we know, your credit score is a number lenders use to determine how much of a risk they are taking by lending you money. The most widely-ordered score is called the FICO Score, created by the Fair Isaac Corporation.
If you check your credit score on a somewhat-regular basis, you may notice some fluctuations from time to time. Don’t worry! Minor variances in your score are completely normal and nothing to worry about.
But what about when your score takes a dramatic hit? Here are some reasons your credit score could have taken a nosedive, and a few steps you can take to fix it:
- Did you recently apply for credit? Yes, it’s tempting to try and get that 15% discount at Target, but another hard pull on your credit report could hurt more than it helps.
- Did you recently close an account? Among other factors, creditors consider the average age of your open accounts. Closing an account influences the average age of your accounts, which, in turn, could negatively impact your credit score.
- Are you over 30 days past due on a bill? It’s very difficult to remove a missed payment on a credit report. If you’ve asked your creditors to do this and they refused, be sure to make every effort to pay at least the monthly payment on time every month.
- Is there a “bad mark” on your credit report(s)? Bad marks include court judgments for unpaid debts (i.e. child support, alimony, etc.) or bankruptcy.
- Do you think there’s an error on your credit report(s)? Approximately 15-20% of consumers have an error on their credit reports, which could influence their credit scores. Call the credit bureau(s) to let them know of the mistakes and your score should increase once the error is fixed.
- Do you suspect you might be a victim of identity theft? Anyone who has been a victim of identity theft knows it can be a long process to resolve. You can minimize the effects of identity theft by carefully reviewing your credit-related statements often to catch any signs of fraud—before it gets out of hand.
It takes time to raise a low credit score, but don’t give up! A higher credit score IS possible if you take the initiative to be responsible about your credit, which includes paying your bills on time and becoming more aware of possible discrepancies in your statements every month.
NHCash can also help you rebuild your credit score with on-time payments on your next personal loan with us. We report good payment history to credit bureaus, which will help you rebuild your credit. That good payment history on your personal loan also allows you to drawdown against your line of credit, meaning you’ll have the money you need, when you need it. To learn more about NHCash personal loans or to apply, visit us at nhcash.com or call 1-888-NHCASH0.